Clabber Company Has Bonds Outstanding with a Par Value of $100,000

question 36

Multiple Choice

Clabber Company has bonds outstanding with a par value of $100,000 and a carrying value of $97,300.If the company calls these bonds at a price of $95,000,the gain or loss on retirement is:

• A)$5,000 loss.
• B)$2,700 gain.
• C)$2,700 loss.
• D)$2,300 loss.
• E)$2,300 gain.

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Definitions:

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